Pigment Producer Heading Into the Black

An upswing in titanium dioxide demand should prove profitable for Tronox in 2014, and shares could rise 40% over the next 12 months.

Demand for titanium dioxide, a white pigment used in paints and coatings, has been weak since 2011. The recession in Europe and the slowdown in China led paint makers to cut back on their orders for the pigment, and live off their stockpiles.

That hurt business at Tronox (ticker: TROX), one of the pigment's largest producers, which saw its sales of titanium dioxide plummet last year. Its stock has fallen 40% since last June, to close...